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Agenda Item # 11

BOARD MEMORANDUM

RECOMMENDATION:

Authorize the General Manager to extend the existing agreement with BKSH & Associates for federal legislative advocacy services for a period of two years in the amount of $402,000 for a new contract total of $1,955,000.  From January 1, 2004, to December 31, 2004, the fixed retainer would be $16,500 per month.  From January 1, 2005, to December 31, 2005, the rate would be $17,000 per month.  Further authorize the General Manager, at his discretion, to extend this agreement after December 31, 2005, for two additional one-year periods at a fixed retainer rate to be negotiated, but which shall not exceed $17,500 per month for the first option and which shall not exceed $18,400 per month for the second option.

BACKGROUND:

In October 1995, the Santa Clara Valley Transportation Authority (VTA) Board of Directors approved the awarding of a contract to Gold and Liebengood to provide VTA with representation and advocacy on transportation initiatives pending before Congress, the White House and federal administrative agencies.  The contract was for a one-year period at a fixed monthly retainer of $14,000.  At the same time, the Board also authorized the General Manager, at his discretion, to execute two one-year options.  These options were exercised at the $14,000 monthly retainer rate.

In February 1996, Gold and Liebengood merged with a second consulting firm in Washington, D.C., called Black, Manafort, Stone and Kelly to form a lobbying and consulting company known as Black, Kelly, Scruggs and Healey.  This new company subsequently became a wholly owned subsidiary of Burson-Marsteller, the worlds leading perception management and public affairs consulting company.  VTAs contract was amended at that time to reflect this change in organizational structure.

On October 1, 1998, the Board of Directors authorized the General Manager to extend the agreement with Black, Kelly, Scruggs and Healey for another three years at a fixed monthly retainer of $14,000 for the first year, $15,000 for the second year, and $16,000 for the third year.  The Board also allowed the General Manager, at his discretion, to execute two one-year options at a retainer to be negotiated, but which could not exceed $18,000 per month.  These two options were exercised at the fixed rate of $16,000 per month.  The second one-year option expires on December 31, 2003.

• In December 2000, the name of the firm was shortened from Black, Kelly, Scruggs and Healey to BKSH & Associates.

• Under the terms of its contract with VTA, BKSH & Associates has been responsible for performing the following activities in Washington, D.C.:

• Analyzing, monitoring and reporting on federal legislation, policies and regulations affecting VTA.

• Developing and implementing strategies for advancing actions at the federal level that are beneficial to VTA, and its projects and programs.

• Communicating directly with members of Congress, the White House and federal transportation agency officials on the impacts of federal transportation legislation, policies and regulations on VTA.

• Communicating directly with members of Congress, the White House and federal transportation agency officials on VTA transportation capital improvement projects that are seeking federal discretionary funding.

Peter B. Slone was the project manager for this contract until January 2002, when he left BKSH & Associates to become vice president for government relations for a medical technology company.  At that time, BKSH & Associates hired Becky Bentson Weber to take over the firms transportation practice and assigned her to be the lead in carrying out the activities related to its contract with VTA.

Ms. Webers background includes serving as majority counsel for the House Transportation and Infrastructure Committee for eight years, where she was heavily involved in crafting the last three major surface transportation reauthorization bills, including the Transportation Equity Act for the 21^st Century (TEA-21).  For the past eight years, she has been a transportation lobbyist, representing both private- and public-sector clients.  In July 2003, she was promoted to managing director of BKSH & Associates.  With this promotion, Ms. Weber is in a leadership position within the firm and plays an important role in the management of its business.  This has been of benefit in terms of the level of service that BKSH & Associates provides to VTA.

DISCUSSION:

During the time that BKSH & Associates has held a contract with VTA, the firm has provided effective federal legislative and administrative advocacy on behalf of VTA.  In doing so, the firm has been instrumental in establishing VTA as a recognized player in terms of the development of key federal transportation policies.

BKSH & Associates has been successful in advocating for and securing federal appropriations for a variety of transportation capital improvement projects for Silicon Valley, including the Tasman West Light Rail Project, the Silicon Valley Rapid Transit Corridor Project (BART Extension to Milpitas, San Jose and Santa Clara), Line 22 articulated buses, the Zero-Emission Bus Demonstration Program, and the Guaranteed Ride Program.  The firm also was able to include authorizations and/or funding in TEA-21 for five projects of interest to VTA:  (1) the Tasman Light Rail Corridor;  (2) the Silicon Valley Rapid Transit Corridor Project;  (3) the Altamont Commuter Express (ACE) service;  (4) the I-680 Widening Project over the Sunol Grade; and  (5) the Silicon Valley Smart Corridor Project.  BKSH & Associates currently is working on funding earmarks for the Silicon Valley Rapid Transit Corridor Project, the Zero-Emission Bus Demonstration Program, the Cerone Operating Division Reconstruction Project, and the I-880/Coleman Avenue Interchange, which are pending in the FY 2004 transportation appropriations bill.

Not only has BKSH & Associates effectively represented VTA's specific project needs in Washington, D.C., but the firm also has been at the forefront in developing and implementing advocacy strategies to protect the interests of highways and transit in general, particularly during the development and enactment of TEA-21 and the current debate over its reauthorization.  The firms efforts in advocating for higher levels of funding for federal surface transportation programs, as well as in preserving the Section 5309 New Starts Program and other elements of the federal transit and highway titles within the framework of TEA-21 have benefited organizations like VTA.

BKSH & Associates provides VTA with thoughtful and thorough analyses of federal transportation issues.  Not only has the firm enhanced VTA's relationships with the members of our Senate and House delegations, but it also has cultivated relationships on behalf of VTA beyond the members of our own congressional delegation, including the key players on the transportation authorizing and appropriations committees.  BKSH & Associates is recognized as one of the highest regarded firms in terms of expertise on transportation issues.  The firm is consistently consulted by members of Congress and the Administration when federal transportation policy is being crafted.

VTA staff believes that the agreement with BKSH & Associates should be extended, and that incurring the expense to initiate a new Request for Proposals (RFP) process is unlikely to produce a firm that would have expertise, advocacy skills and resources comparable to BKSH & Associates.  Furthermore, staff does not believe that changing representation in Washington, D.C., at this juncture in the debate over a multi-year TEA-21 reauthorization bill and at a time when the Silicon Valley Rapid Transit Corridor Project is at a critical stage in both the appropriations and the Federal Transit Administrations New Starts processes would be prudent and in the best interests of VTA.

ALTENATIVES:

The Board could decide to require VTA staff to initiate a new RFP process for this contract, or it could elect to extend the existing agreement with BKSH & Associates for a lesser or longer term.

FISCAL IMPACT:

The two-year extension of the agreement with BKSH & Associates consists of a fixed monthly retainer of $16,500 for the first year and $17,000 for the second year.  The monthly retainer is inclusive of all ordinary expenses.  Travel expenses related to any trips by Ms. Weber to San Jose to conduct VTA business will be reimbursed by VTA, but only if VTA has granted prior approval for the travel.  The funds for this agreement have been included in the budget.

Under the terms of the contract extension, BKSH & Associates is required to provide a detailed monthly activities summary that will be included in the legislative reports that are regularly distributed to the Board of Directors.

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